Nikul You've collected the following information from your favorite financial website.52-Week PriceDividendHiLoStock (Dividend)Yield % PE Ratio Close Price Net Change77.4010.43Acevedo .362.6613.90-.2455.8133.42Georgette, Incorporated 1.543.81040.43-.01130.9469.55YBM 2.052.31088.983.0750.2435.0013.95Manta Energy .8020.74Winter Sports .325.21.562815.43??-.26.18According to analysts, the growth rate in dividends for YBM for the next five years is expected to be 20 percent. Suppose YBM meetsthis growth rate in dividends for the next five years and then the dividend growth rate falls to 5.25 percent, indefinitely. Assumeinvestors require a return of 12 percent on YBM stock. According to the dividend growth model, what should the stock price be today?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.Current stock price

Current Dividend, D0 = $2.05Dividend grow by 20% for the next 5 years.D1 = $2.05*1.20 = $2.460D2 =…

Answered: You've collected the following…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You've collected the following information from your favorite financial website. 52-Week Price Hi 77.40 Lo 10.43 Stock (Dividend) Dividend Yield PE Close Ratio Price Net Change Acevedo .36 2.6 6 13.90 -.24 55.81 33.42 Georgette, Incorporated 1.54 3.8 10 40.43 -.01 130.93 69.50 YBM 2.00 2.2 10 88.97 3.07 50.28 35.00 13.99 Manta Energy .84 5.4 6 15.47 -.26 20.74 Winter Sports .32 1.5 28 ?? .18 According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 14 percent. If investors feel this growth rate will continue, what is the required return for the stock? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Required return %
You've collected the following information from your favorite financial website. 52-Week Price Lo 10.46 Acevedo .39 Hi 77.70 55.81 130.93 50.24 35.00 33.42 69.50 Stock (Dividend) Georgette, Incorporated 1.54 YBM 2.00 13.95 Manta Energy .80 20.74 Winter Sports .32 Dividend PE Yield 2.7 3.8 2.2 5.2 1.5 Ratio 6 10 10 6 28 Close Price 14.20 40.43 88.97 15.43 ?? Net Change -.24 -.01 3.07 -.26 .18 According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4.25 percent. If investors feel this growth rate will continue, what is the required return for the company's stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
You've collected the following information from your favorite financial website. 52-Week Price Lo 10.49 Acevedo .42 33.42 69.50 13.95 20.74 Hi 78.00 55.81 130.93 50.24 35.00 Stock (Dividend) Required return Georgette, Incorporated 1.54 YBM 2.00 Manta Energy .80 Winter Sports .32 Dividend PE Yield % Ratio 2.9 3.8 2.2 5.2 1.5 % 6 10 10 28 Close Price 14.50 40.43 88.97 15.43 ?? Net Change -.24 -.01 3.07 -.26 · According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4 percent. If investors feel this growth rate will continue, what is the required return for the company's stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 18
You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 33.72 69.50 13.95 Manta Energy .80 20.74 Winter Sports .32 Hi 77.40 56.11 130.93 50.24 35.00 Stock (Dividend) a. Highest dividend yield b. Lowest dividend yield Georgette, Incorporated 1.84 YBM 2.00 Dividend Yield % PE Ratio Close Price Net Change 2.6 6 -.24 4.5 -.01 10 10 2.2 3.07 5.2 6 -.26 1.5 28 .18 Find the quote for the Georgette, Incorporated. Assume that the dividend is constant. a. What was the highest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the lowest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % % 13.90 40.73 88.97 15.43 ??
You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo 36 33.42 Georgette, Incorporated 1,54 69.50 YBH 2.00 14.09 Manta Energy .94 20.74 Winter Sports 32 Hi 77.40 55.81 130.93 50,38 35.00 Stock (Dividends Required retum Dividend Yield PE Ratio Close Price liet Change .24 2.6 3.0 2.2 6.0 4.5 6 10 10 60 13.90 40.43 68.97 15.57 22 -.01 3.07 .26 .18 According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 14 percent. If Investors feel this growth rate will continue, what is the required return for the stock? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as o percent rounded to 2 decimal places, e.g., 32.16.
You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 34.17 Georgette, Incorporated 2.29 69.50 YBM 2.00 13.95 Manta Energy .80 20.74 Winter Sports .32 Hi 77.40 56.56 130.93 50.24 35.00 Stock (Dividend) a. Highest dividend yield b. Lowest dividend yield Acevedo .36 Find the quote for the Georgette, Incorporated. Assume that the dividend is constant. a. What was the highest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the lowest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % Dividend Yield % PE Ratio Close Price Net Change 2.6 6 -.24 5.6 10 -.01 2.2 10 3.07 5.2 6 -.26 1.5 28 .18 % 13.90 41.18 88.97 15.43 ??
You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 33.42 69.50 13.95 Manta Energy .80 20.81 Winter Sports .39 Hi 77.40 55.81 130.93 50.24 35.70 Stock (Dividend) a. Stock price b. Required return Acevedo .36 Georgette, Incorporated 1.54 YBM 2.00 Dividend Yield % PE Ratio Close Price Net Change 6 -.24 -.01 10 10 3.07 -.26 .18 % 2.6 3.8 2.2 5.2 1.5 6 28 a. Using the dividend yield, calculate the closing price for Winter Sports on this day. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. The actual closing price for Winter Sports was $25.69. Analysts project a 4.5 percent dividend growth rate for Winter Sports. What is the required return for the stock using the dividend discount model and the actual stock price? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 13.90 40.43 88.97 15.43 ??
You've collected the following information from your favorite financial website. 52-Week Price Lo 10.62 Acevedo .55 Hi 79.30 55.81 130.93 50.24 35.00 33.42 69.50 13.95 Required return Stock (Dividend) Georgette, Incorporated 1.54 YBM 2.00 Manta Energy .80 20.74 Winter Sports .32 Dividend PE Yield % Ratio 3.5 3.8 2.2 5.2 1.5 % 6 10 10 6 28 Close Price 15.80 40.43 88.97 15.43 ?? According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4.25 percent. If investors feel th growth rate will continue, what is the required return for the company's stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Net Change -.24 -.01 3.07 -.26 18
You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 34.27 Georgette, Incorporated 2.39 69.50 YBM 2.00 13.95 Manta Energy .80 20.74 Winter Sports .32 Hi 77.40 56.66 130.93 50.24 35.00 Stock (Dividend) a. Highest dividend yield b. Lowest dividend yield Dividend Yield % 2.6 5.8 2.2 5.2 1.5 6.84 X % 4.13 X % PE Ratio 6 10 10 6 28 Close Price 13.90 41.28 88.97 15.43 ?? Find the quote for the Georgette, Incorporated. Assume that the dividend is constant. a. What was the highest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Net Change -.24 -.01 3.07 -.26 .18 b. What was the lowest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
You've collected the following Information from your favorite financial website. 52-Week Price Dividend Hi 77.40 Lo 10.43 Stock (Dividend) Yield % PE Ratio Close Price Net Change Acevedo .36 2.6 6 13.90 -.24 55.81 33.42 Georgette, Incorporated 1.54 3.8 10 40.43 -.01 130.93 69.50 YBM 2.00 2.2 10 88.97 3.07 50.39 35.00 14.10 20.74 Manta Energy .95 6.1 6 15.58 -.26 Winter Sports .32 1.5 28 ?? .18 According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 11 percent. If Investors feel this growth rate will continue, what is the required return for the stock? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Required return %
You've collected the following information from your favorite financial website. 52-Week Price Div Yld PE Close Net Ratio Price Chg Hi Lo Stock (Div) % 77.40 10.43 Palm Coal .36 2.6 6 13.90 .24 55.81 33.42 Lake Lead Grp 1.54 3.8 10 40.43 -.01 130.93 69.50 SIR 2.00 2.2 10 88.97 3.07 50.24 13.95 DR Dime .80 5.2 6 15.43 -.26 .18 35.30 20.77 Candy Galore 0.35 1.5 28 ?? a. Using the dividend yield, calculate the closing price for Candy Galore on this day. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Assume the actual closing price for Candy Galore was $23.02. Your research projects a 4.75 percent dividend growth rate for Candy Galore. What is the required return for the stock using the dividend discount model and the actual stock price? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock price b. Required return %
ou've collected the following information from your favorite financial website. 52-Week Price Lo 10.55 Acevedo .48 Hi 78.60 55.81 130.93 50.24 35.00 Stock (Dividend). Required return 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 Manta Energy .80 13.95 20.74 Winter Sports .32 Dividend PE Yield & 3.2 3.8 2.2 5.2 1.5 % Ratio 6 10 10 6 28 Close Price 15.10 40.43 88.97 15.43 ?? According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 3.5 percent. If investors feel this growth rate will continue, what is the required return for the company's stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Net Change -.24 -.01 3.07 -.26 .18

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